Direct Answer
5 SEC filers are classified under the Standard Industrial Classification code that describes the enterprise servers industry, and their latest annual reports show $551.7 billion of combined revenue and a median operating margin of 5.7%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Enterprise server makers build computers for corporate data centers and private clouds, increasingly with GPU-based configurations. Demand follows enterprise refresh cycles and AI infrastructure spending, and margins are thin. The first numbers to compare across companies here are server revenue and backlog, gross margin and AI server share.
Key Industry Metrics
- Server revenue and backlog: Sales of corporate and cloud servers and orders waiting. Orders follow refresh cycles and AI buildouts, though large orders make backlog lumpy.
- Gross margin: Revenue left after components and assembly. Margins are thin because chips and memory are a large part of cost, and mix toward higher-end systems helps.
- AI server share: The portion of server revenue from GPU-based configurations. A rising share shows growth from AI, but these systems carry high pass-through costs and thinner margins.
- Customer mix: The split of sales between enterprises, cloud providers and governments. Cloud buyers order large volumes at low margins, while enterprises buy smaller lots at higher prices.
- Component costs: Prices of chips, memory and other parts. Costs feed through with a lag, so rapid swings can lift or squeeze margin before prices to customers adjust.
Primary Macro Drivers
- Enterprise IT refresh cycles: Companies replace aging servers on regular cycles, so refresh timing drives revenue and backlog.
- AI and cloud workloads: Running AI and cloud-style workloads requires more compute per rack, raising revenue per system and AI server share.
- Component supply: Availability of processors, memory and accelerators limits what can ship, affecting backlog, gross margin and component costs.
- Pricing: Price changes and discounting in competitive deals determine margin per system and the mix between standard and AI servers.
Major Risks
- Thin margins: Systems consist largely of pass-through components, so small cost slips erase profit; watch gross margin and component cost trends.
- Competition from direct hyperscaler designs: Large cloud buyers design their own servers and buy direct from manufacturers, reducing the market for branded vendors; watch customer mix and share.
- Component cost swings: Memory and processor prices can move faster than contract prices adjust, squeezing margin; watch gross margin and component commentary.
- Cyclical spending: Companies delay refreshes when budgets tighten, so orders can fall sharply; watch backlog, bookings and enterprise customer commentary.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Medium |
| Regulatory Intensity | Low |
| Industry Maturity | Mature |
| Geographic Importance | Global |
Enterprise Servers Filers in the SEC Record
5 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 3571. Their latest fiscal years end between 2025 and 2026, and together they reported $551.7 billion of revenue. Median revenue growth over the prior year was 18.8%. Median operating margin was 5.7% and median net margin 5.2%. Median total liabilities were 70% of total assets, and 4 of 5 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Apple Inc. | $416.2 billion | 6.4% | 32.0% | 26.9% | FY 2025 |
| Dell Technologies Inc. | $113.5 billion | 18.8% | 7.2% | 5.2% | FY 2026 |
| Super Micro Computer, Inc. | $22.0 billion | 46.6% | 5.7% | 4.8% | FY 2025 |
| One Stop Systems, Inc. | $32 million | 31.2% | -10.5% | 15.8% | FY 2025 |
| Socket Mobile, Inc. | $15 million | -19.6% | -21.3% | -95.4% | FY 2025 |
Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Enterprise Servers guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Enterprise Servers industry?
Key performance indicators for the Enterprise Servers industry include: Server revenue and backlog, Gross margin, AI server share, Customer mix, Component costs. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Enterprise Servers industry?
The Enterprise Servers industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Enterprise Servers industry?
The primary risks for Enterprise Servers companies include: Thin margins, Competition from direct hyperscaler designs, Component cost swings, Cyclical spending. Investors should assess each company's exposure to these factors and its track record of navigating them.